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LUT (Letter of Undertaking) is a crucial document under the GST framework that enables exporters to conduct export transactions without paying Integrated Goods and Services Tax (IGST) at the time of supply. It serves as a declaration by the exporter to fulfill all export obligations within specified timelines.
For all registered taxpayers engaged in exporting goods or services, filing the GST LUT Form (Form GST RFD-11) on the GST portal is mandatory. This allows seamless exports without upfront IGST payment, simplifying export operations and improving cash flow.
| Aspect | LUT (Letter of Undertaking) | Bond with Bank Guarantee |
|---|---|---|
| Applicability | Most exporters with clean record | Ineligible for LUT or high-risk cases |
| Financial Requirement | No bank guarantee needed | Bank guarantee required (≤15% of bond amount) |
| Validity | One financial year | Varies as per Commissioner's order |
| Documentation | Simpler process | More extensive documentation |
| Cost | No additional cost | Bank guarantee charges apply |
| Processing Time | Faster approval | Longer due to bank procedures |
One Financial Year: LUT remains valid for one year from submission date
Renewal Required: Fresh LUT must be filed for each financial year
Continuous Compliance: Must maintain eligibility throughout validity
Terms Acceptance: LUT accepted with specific conditions
Privilege Revocation: Non-compliance leads to LUT cancellation
Bond Requirement: May need to furnish bond if LUT revoked
Gather all required documents → Prepare LUT cover letter → Complete Form GST RFD-11
Visit gst.gov.in → Enter credentials (username & password) → Complete CAPTCHA → Click 'Login'
Navigate to 'Services' → 'User Services' → 'LUT/Bond' → Select 'Letter of Undertaking (LUT)'
Complete all sections → Upload required documents → Review information → Verify details
Submit application → Use Digital Signature Certificate (DSC) for verification → Confirm submission
Receive ARN (Application Reference Number) → Track status online → Download approved LUT
Conduct exports without paying IGST upfront, eliminating tax payment and refund claims
Avoid complex refund procedures and follow-ups with tax authorities
Unblock funds that would be locked as tax payments, crucial for SMEs
Annual validity reduces repetitive filings, allowing focus on core business activities
Especially beneficial for small and medium enterprises with financing constraints
Streamlined export process enhances competitiveness in international markets
LUT is valid for one financial year only → Fresh LUT must be filed each year
LUT submissions must be on registered entity's official letterhead
Form must be submitted by authorized personnel (MD, Company Secretary, Partner, Proprietor)
LUT acceptance has specific terms → Non-compliance leads to privilege revocation
For bonds, bank guarantee should not exceed 15% of bond amount (may be waived)
Ineligible entities can furnish bond with bank guarantee on non-judicial stamp paper
If LUT conditions are not met within specified timelines, privileges will be withdrawn and exporter must provide bonds. Regular exporters should maintain continuous compliance to avoid disruption.
Navigating LUT compliance doesn't have to be complex. Let our experts handle it for you!
Our GST professionals understand export regulations and guide you through seamless Form RFD-11 submission
Complete assistance from document preparation to online submission, ensuring accuracy at every step
Proactive reminders and annual renewal services to ensure continuous LUT validity
Free up your time to focus on expanding export operations while we handle compliance
Experience hassle-free GST LUT filing that empowers your export ventures like never before.
Contact Compliance 360 today and unlock tax-free export benefits without compliance worries.
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We help exporters file LUT accurately so you can export goods or services without paying IGST upfront.
Our experts ensure correct documentation and fast online submission for hassle-free LUT approval.
Suitable for startups, service exporters, and established businesses involved in international trade.
Our professionals understand GST export rules and ensure your LUT complies with the latest regulations.
From eligibility check to ARN generation, we manage the entire LUT filing process for you.
We also guide you on export invoicing, returns, and renewal of LUT every financial year.
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